New research conducted by PayPal has revealed that small businesses are losing out on sales by failing to modernise their payment capabilities.
44 per cent of small businesses, many of which are retailers, have never carried out a review of their payment methods despite the significant advances over the last few years.
Contactless payment, smartphones and digital wallets have grown exponentially in popularity over the last few years, but a significant majority of small business retailers are failing to implement new payment technologies.
Despite mobile shopping growing at nearly four times the rate of overall online spending, the payment giant’s study has found that only 17 per cent of retailers have a mobile friendly website and only four per cent have a mobile app that takes payments.
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Sixty-three per cent of consumers were found to have abandoned a purchase online because the retailer did not offer their preferred payment method, 56 per cent also admitted to this in a bricks and mortar store.
This has been found to put more customers off a purchase than poor customer service, queues at a checkout and delivery charges.
“Businesses that don’t join the 21st century stand to lose out,” PayPal UK small business director Nicola Longfield said.
“The good news is that much of this technology is designed to make life easier for small businesses, as well as consumers.
"Integrating a simpler check-out process, where customers don’t have to enter their card and delivery details every time on a tiny screen can help convert more sales."